Premiums Rose 2.9 Percent for ObamaCare Silver Plans

The price of ObamaCare silver plans increased an average of 2.9 percent nationally, according to a new report by the Urban Institute.

The new data, which were collected on silver plans from every state over the last year, ease widespread concerns that ObamaCare was fueling massive premium hikes.

Still, the researchers warn the future of premium increases is uncertain in the long-term. For plan’s prices to remain low, insurance companies must continue to feel pressure from customers to be competitive.

“Without plan switching, competitive pressures on insurers will weaken,” the report states.

Researchers found that insurers kept rates low by “developing more limited provider networks” – which means some providers accepted lower reimbursement rates.

“Whether these arrangements are sustainable and remain attractive to consumers over time is unknown,” the report states.

Premium increases varied greatly by region. Customers in the Northeast saw an increase of 1.8 percent compared to a high of 5.4 percent in the South.

Still, premiums remain the highest in the Northeast, where customers face an average of $284 per month. Customers in the South and Midwest pay about $50 less per month.

Source Link